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Question ( 1 ) Future Ltd . has provided you with the following set of projection assumptions: In your review of the assumptions, you are
Question Future Ltd has provided you with the following set of projection assumptions: In your review of the assumptions, you are concerned about Future's ability to achieve the reduction in accounts receivable days, which you believe will remain at days. You also feel that gross margin will be unchanged. If you are correct, what will be the impact on year cash flow? Cash flow will be largely unaffected. Cash flow will be lower than originally projected and will probably decrease compared to the prior year. Cash flow will be lower than originally projected, but likely still increase over the prior year.
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Future Ltd has provided you with the following set of projection assumptions:
In your review of the assumptions, you are concerned about Future's ability to achieve the reduction in accounts receivable days, which you believe will
remain at days. You also feel that gross margin will be unchanged. If you are correct, what will be the impact on year cash flow?
Cash flow will be largely unaffected.
Cash flow will be lower than originally projected and will probably decrease compared to the prior year.
Cash flow will be lower than originally projected, but likely still increase over the prior year.
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